France has urged India to open up its domestic markets by eliminating the existing hurdles, which will encourage French companies to invest up to one billion U.S. dollars in this country.

"French companies are willing to invest up to one billion U.S. dollats in India. There are always obstacles to opening markets. I am not here to interfere in the political decisions but these decisions (to open up markets) are nonetheless necessary. We are all convinced that India has a great future and we want to partake in that," French President Francois Hollande was quoted as saying in Mumbai on Friday as he wrapped up his two-day state visit to India.

The French President, who had earlier met Prime Minister Manmohan Singh during which several pacts were inked between the two countries, also said that India "has the potential to grow at 10 percent" but faces "immense challenges commensurate with its size."

"French businesses would like to invest more in an emerging economy like India. We pride ourselves on being one of the biggest investors here. The stock of our assets here is $17 billion and we wish to increase this investment flow by one billion U.S. dollars. We are ready for it. We need help of everybody, especially the big emerging economies like India."

The bilateral trade between India and France currently stands at eight billion U.S. dollars.